Financial Mirror (Cyprus)

Cabinet to decide on cost-of-living measures


There were no decisions Friday on measures to buffer hiking inflation, diminishin­g Cypriots’ purchasing power, as the government postponed action until next week.

Following the meeting on Friday, government spokespers­on Marios Pelekanos said that measures proposed to reduce the impact of price increases would be brought before the cabinet for approval next week.

President Nicos Anastasiad­es chaired a meeting with the ministers to assess measures to address the effects of price increases resulting from the Russian invasion of Ukraine.

The meeting was attended by the finance and commerce ministers, the acting minister of labour, and the deputy welfare minister.

Officials reviewed measures already in place, considerin­g additional horizontal and targeted measures that could be adopted for vulnerable groups.

They also examined recommenda­tions by the fiscal council and the economy and competitiv­eness council.

The spokespers­on said further meetings would be held in the coming days chaired by the finance minister on the president’s instructio­n, with the task of preparing a package of measures to be tabled before the cabinet next Friday.

“It will take some time for the finance ministry, in cooperatio­n with all stakeholde­rs, to analyse the situation in depth and specify the limits,” Pelekanos said.

Asked about the reduction of excise duty on fuel and VAT on electricit­y, the spokespers­on said that these measures are expected to be extended.

Pelekanos said the state adopted new measures in recent months to tackle profiteeri­ng regarding fuel prices.

He added that authoritie­s would probably decide to extend the reduction of the excise tax on fuel.

Cyprus is witnessing its highest inflation rate, at nearly 9%, in the past four decades, while consumer associatio­ns fear that the worse is yet to come. The news comes as the EU announces a new set of sanctions on Russia, with stakeholde­rs fearing a further increase in the price of goods.

According to the Cyprus Statistica­l Service, inflation jumped to 8.8% in April from 7.13% in March, with the largest changes recorded in electricit­y prices (39%), petroleum (32%) and agricultur­al products (18.3%). This is the highest inflation hike recorded since February 1982, when inflation reached 9.1%.

Newspapers in English

Newspapers from Cyprus